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Comprehensive SWOT Analysis of Upstox – A Well-Known Stockbroker Company

by | Case Studies | 0 comments

Last time, we dived into one of the toughest contenders in the private banking area, HDFC. This time, we are looking to conduct a SWOT analysis of Upstox.

Upstox is a well-known stockbroker with a client base of more than ten lakhs. Have you ever wondered how a company stays head above water? The goal is to study the business environment and adapt to dynamic changes.

Furthermore, Upstox has invested in efficient digital marketing strategies. The current global situation is driving digitalization, and if you’re interested in learning more, check out Karan Shah, CEO, and Founder of IIDE’s Free MasterClass on Digital Marketing 101.

Do you know how a company assesses its environment? One of the most used methodologies is SWOT Analysis. We’ll take a closer look at the SWOT Analysis of Upstox in this blog. Let’s study a little bit about the company, its products and services, and its competitors before we get started.

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About Upstox

SWOT Analysis of Upstox - All About Upstox

                      (All About Upstox, Source: OnlineLearn)

Shrini Viswanath, Ravi Kumar, and Kavitha Subramanian founded Upstox, an Indian-based online trading platform, in 2009. Long-term investors, professional traders, and part-time traders can all benefit from the firm’s online stock trading services, which are tailored to their needs. 

Tiger Global, Kalaari Capital, and Ratan Tata are among the other investors who have partnered with Upstox. Stock exchanges such as the NSE have registered the company.

Trading, analysis, charting, and many other trading functions are available on the Upstox platform. Orders can be placed via a mobile phone or a web browser using this platform. In 2012, the firm was the first in the industry to provide fixed-price unlimited trading programs.

Quick Stats on Upstox
Founder Shrini Viswanath, Ravi Kumar, Kavitha Subramanian
Year Founded 2009
Origin New Delhi
No. of Employees 960+
Company Type Stockbroker
Market Cap $ 1 Billion (2021)
Annual Revenue $ 140.3 Million (2021)
Net Income/ Profit $ 17.4 Million (2021)

 

Products & Services of Upstox

SWOT Analysis of Upstox - Upstox Range of Services

                             (Upstox Range of Services, Source: Mint)

From the moment they establish an account to the time they execute financial services, the organization ensures that their clients benefit from a high-tech online trading platform and best-in-class services. Some of Upstox’s products are listed below:

  • Pro Web
  • Pro Mobile
  • Mutual Funds
  • Developer
  • Aglo Lab


Competitors of Upstox

Competitors have been perplexed by the increasing popularity of stock trading and brokerage. Upstox’s major competitors include:

  • Zerodha
  • Sharekhan
  • 5Paisa
  • Angel Broking
  • HDFC Securities
  • Trading bills

Now that we got to know about the company’s function and their vast business globally, now let’s dig into the SWOT analysis of Upstox.


SWOT Analysis of Upstox

If you make your decisions on the fundamentals, investing in the stock market may be a very lucrative activity. Before purchasing a company’s stock, you must evaluate its strengths, shortcomings, and future potential.

While there are various techniques for evaluating a business, a SWOT analysis is a well-known way that can provide useful information about the company’s potential. The SWOT analysis of Upstox assesses a company’s investment feasibility from four perspectives: strengths, weaknesses, opportunities, and threats.

SWOT Analysis of Upstox - SWOT Infographics of Upstox

So let us first start by looking at the strengths of Upstox from the SWOT analysis of Upstox.

Strengths of Upstox

A company’s strengths are the qualities that distinguish it from the competition. Leveraging a strength or main focus area has aided the growth of many successful businesses. As a result, they have become market leaders in their field. 

  • Low-cost Trading: Financial services are supplied remotely via the internet. The organization offers low-cost brokerage programs while keeping operational costs low by using an online business model. It offers free lifetime delivery trades, modest rates of 20% on each trade, and a one-month free brokerage facility.
  • Funding: Big companies like Ratan Tata, Kalaari Capital, and GVK Davix have invested in Upstox (RKSV), making it a safe and reputable brokerage for your money.
  • Technology: Investors with web/desktop, Android, and iOS software systems can use Upstox’s HTML-based trading solutions. The corporation has made major technological investments. It offers its consumers an outstanding trading platform and tools.
  • Costs: Upstox likewise feels that word-of-mouth referrals are the most effective approach to expand its business. As a result, unwanted marketing costs are avoided. Instead, it assumes that happy consumers will naturally refer to their friends. That is why Upstox places a higher value on technology and customer service.
  • Marketing Strategies: Upstox has gained customer awareness through its collaboration as the official partner at the Indian premier league.

SWOT Analysis of Upstox - Upstox as Official Partner at IPL

(Upstox as Official Partner at IPL, Source: The Financial Express)


Weaknesses of Upstox

There may be some areas where the company falls short, in addition to its strengths. Some of these weaknesses may be remedied, while others that are more significant can make or break the company’s future growth chances.

  • Limited Services: Upstox has fallen short of delivering several services or features that its competitors provide. Some of these include making IPO and FPO investments; moreover, it does not provide API access for automated trading.
  • Research & Development: Because the company did not spend wisely on research and development, demand forecasting gaps and opportunities were overlooked.
  • Lack of Knowledge: There are still people who are unaware of trading in various sections of the country. It does not provide stock recommendations or ideas, which could make a beginner trader’s experience more difficult.
  • Customer Service: Because the platform is entirely online, there is no personal relationship manager and no research advisory service. It also does not provide a 24/7 customer support service.
  • Competition: Stock trading is a competitive market. Firms are up against fierce rivalry, which is inherent in every business. Upstox must focus on overcoming the strain of competition and standing out from the crowd.


Opportunities for Upstox

Opportunities are one of the most important and difficult variables to figure out. Opportunities depict the company’s possible growth trajectory. Some organizations may have an easier time identifying a potential than others.

  • Increased Customer Base: Upstox has attracted 10 lakh investors, and with increased exposure, there are impending opportunities for client base expansion.
  • Market Research: By thoroughly researching market circumstances, the company may take advantage of the opportunity to provide customized brokerage services while also improving the existing investor experience.
  • Awareness: With shifting educational reforms and government regulations aimed at educating investors and raising trading awareness among the general public, there is a growing opportunity for stock brokerage firms.
  • Bullish Markets: Because every investor is drawn to bullish markets, they provide a good opportunity for firms.


Threats to Upstox

Threats are the last of the four points in the SWOT analysis of Upstox. Threats are flaws that have been amplified and have a direct influence on the company’s operations.

  • Government Policies: Government policies change regularly in different countries. Furthermore, political upheaval in the country might disrupt trading cycles and negatively affect stock markets.
  • Substitutes: Because firms can enter and quit an industry with few limitations, the number of substitutes in the same product line at different prices poses a risk of losing the investor base.
  • Frauds: With the advancement of the digital era, there has been an increase in the number of occurrences of cybercrime. Because the firm’s operations are conducted entirely online, there is a greater risk of fraud and the loss of the personal information of investors.
  • Foreign Firms: Foreign companies tend to attract local investors, putting pressure on Indian companies to lose market share.
  • Bearish Market: The inherent nature of stock markets poses the greatest danger to stockbroker companies like Upstox. Bearish market conditions pose a significant risk because no investor wants to trade in such circumstances.

This ends our absolute SWOT analysis of Upstox. Let us conclude our learning below.

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To Conclude

We learned about the firm’s primary strengths and weaknesses, as well as the external factors that create opportunities and dangers for Upstox, through a complete SWOT Analysis of Upstox. Upstox has been able to gain market share by offering a variety of low-cost brokerage options. However, in terms of customer assistance, it falls short of expectations.

Due to greater public awareness, there are more opportunities for Upstox. External variables such as substitutes, global competition, and rising frauds, on the other hand, constitute a risk to Upstox.

As competition grows in a saturated business, companies are left to fight it out by winning over their clients through increased marketing efforts. In today’s rapidly changing environment, being well-versed in digital marketing is a must for all marketing enthusiasts. Check out IIDE’s 3 Month Advanced Online Digital Marketing Course if you want to learn more and improve your skills.

Else, if you are someone who wants to learn certain digital marketing skills then you can check out IIDE 13+ short term courses in digital marketing for the same.

We hope this blog on the SWOT analysis of Upstox has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

If you enjoy in-depth company research just like the SWOT analysis of Upstox, check out our IIDE Knowledge portal for more fascinating case studies.

Thank you for taking the time to read this, and do share your thoughts on this case study of the SWOT analysis of Upstox in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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